Note: USDA defines disposable income as the amount of money U.S. consumers have left to spend or save after paying taxes; Data: USDA; Chart: Axios Visuals
Americans are spending more than 11% of their disposable income on food, per federal data — the highest level in more than three decades, matching 1991, the Wall Street Journal reports. Groceries and restaurants are both getting more expensive.
Why it matters: This measure could help explain why Americans feel badly about the economy, despite promising signs for the nation as a whole.
Zoom in: Prices ticked up again in January, even with overall inflation cooling.
Food producersare facing higher costs for some products, which they're passing along to consumers, and the tight labor market is also keeping labor costs high.
Good news: The closely watched price of Grade A eggs is down sharply from last year's stratosphere — $2.51 in December vs. $4.82 in January 2023.